Economics professor says that the salary settlement will affect other settlements – news Nordland

The strike among 25,000 members of LO and YS is in its third day. The strike affects large parts of society, and on Friday even more LO and YS members may be taken out. Many have questions about regulations during the strike and how they should approach the conflict. An employment law expert, an economics professor and two NAV employees answered questions from the audience today. Further down in the case, you can see what the readers asked the experts about. Economics professor: – Contagion effect One of the questions was how the result of the strike will affect the salary negotiations for other professional groups, for example the teachers this year? Economics professor Frode Steen says that what happens in the front-line negotiations sets the stage for the negotiations in the public sector that come afterwards. In this way, it also affects the teachers, but not necessarily one-to-one. Ferry strike on Helgeland. Photo: Ole-Christian Olsen / news – To the extent that the front subject gets a good report, then there is probably a certain contagion effect, yes, says Steen. And explains: – For every industry that gets a good report, the more difficult it is to give a bad report to the next industry. That also applies here. Then it’s a bit special in Norway because we have this front subject system which means that you get, in a way, a solution for a lot of people in the industry. This gives fuel to the ongoing discussion in Norway, explains Steen: – To what extent should teachers and nurses, for example, fall behind, and actually have a worse pay trend than, for example, those in industry? OUR TURN: 300 organized trade and office workers at Ikea Furuset are on strike. – We have had a real wage decrease in the last wage settlement, while the directors receive million dollar bonuses. It can’t go on like this, so now it’s our turn, says club manager Tormod Aarum. Photo: Snorre Tønset / news Can lead to better public settlement In Norway, the settlement of frontline subjects is important as they are decided by the wages board in the export industry and thus the private settlement that forms the norm for sheltered industry and public services. – It gives more guidance than a single group or a single company getting a very good settlement, says Steen. – The result of the strike will affect the settlement in the public sector, says economics professor Frode Steen at NHH. Photo: Hallvard Lyssand / Hallvard Lyssand He explains that when the frontline is agreed, it forms a starting point for the other negotiations. But very often the public does not get the same payoff. – But it is clear that if you get a very good salary statement in front-line subjects, it will give an indication that there will be a better salary statement for the public sector as well. The reason for this is that when the public sector starts to negotiate, the employees will think that they cannot be too far behind the front-line professionals. – If you think that large groups in the public sector got a very good settlement, then it is very difficult to tell the others in the public sector that they should get a worse settlement. Roger Majdek, grocer in Rema 1000 on Ensjø fills up with Pepsi Max. Around 25,000 members of LO and YS across the country have gone on strike after there was a breach in the interim settlement between LO and NHO on Sunday 16 April 2023. Photo: Fredrik Varfjell / NTB – It’s about comparing employees across the board. Then it is the case that, after the large groups have clarified their issues, there are guidelines for what is possible to achieve for the rest. Why do the media write about beer and ice cream? One submitter wondered the following: “news dagsnytt mainly only focuses on the fact that beer and ice cream can run out. What about those of us who have an extra 2 hour commute to work because the ferry, which only takes 25 minutes, does not cross the fjord because of the strike? This affects health trips, school pupils and the general public, necessary transport.” See the answer Kai Jæger Kristoffersen, head of duty at news Nordland, replied: “Thank you for the feedback! Although we write a lot about the consequences of the strike, which, among other things, means that some groceries may run out of stock in the shops, we are also concerned with covering the strike and what it entails. There are guaranteed to be more cases that deal with the very core of the strike. Having said that, it’s clear that people care about Pepsi Max and ice cream until May 17th, but we’ll make sure we can keep two thoughts in our heads at the same time. 🙂 Here are some examples of cases that are not about soda or ice cream: https://www.news.no/nordland/streik_-ble-permittert-fra-jobben-i-vikarbyra-da-streiken-startet-1.16378044 https://www.news.no/norge/resepsjonist-connie_-_-har-bare-fatt-litt-over-en-krone-i-lokale-lonnstillegg-siden-2016-1.16378395 https://www.news .no/norge/na-gar-25.000-anssette-ut-i-streik-1.16376214” See the answer Thomas Benson, lecturer at Nord University and lawyer in employment law, replied: “Important focus. The ferry strike may lead to a forced wage board. Remember that the national mediator can also initiate new talks with the parties. The national mediator and the mediator who has dealt with the case can resume the mediation at any time, cf. section 30 second paragraph of the Employment Disputes Act. Society and affected parties must initially tolerate the disadvantages that industrial action brings with it. If the industrial action leads to a danger to life, health or safety or threatens absolutely vital societal interests, it may still be appropriate to intervene with a compulsory wage board. In such situations, the government presents a proposal to the Storting with a proposal for a special law that prohibits continued industrial action and leaves the National Salaries Board to deal with the dispute of interest. The National Wages Board’s ruling takes effect as a collective agreement between the parties”. What about parcel post delivery? One submitter asked: “Will there be a stop to the delivery of parcel post? So isn’t it a good idea to order goods online now?” See the answer Thomas Benson, lecturer at Nord University and lawyer in employment law, replied: “It can happen. PostNord has now laid off almost all employees. https://www.news.no/vestland/postnord-permitterer-naer-alle-ansatte-1.16378501» Where is the line when breaking a strike? Another asked: “Where is the line when breaking a strike, and what consequences can it have?” Is it e.g. okay for the manager to take over the store when the people who actually run the store are on strike?” See the answer Thomas Benson, lecturer at Nord University and lawyer in employment law, answered: Yes, the boss has the right to work in the shop. They were clarified in the Tollpost judgment (Rt-2001‑501). The question in the case was, among other things, whether the general manager of a transport company could carry out assignments for Tollpost. The Supreme Court concluded that the general manager could carry out transport tasks for Tollpost. The trade union was therefore held liable for damages for having stopped the general manager’s execution of transport assignments for the client. What about strike contributions? One wondered: “Do you get strike allowance as an organized worker, if you are not called out on strike duty?” See the answer Malin Høgvoll, subject coordinator at work at NAV Kontaktsenter, replies: “Hi Per Aksel. If you are not taken out on strike duty, you are basically not entitled to strike allowance. In any case, it’s a good idea to contact your trade union to get more information about what kind of support is available to you as an organized worker in connection with a strike.” What about the communication between the parties? Another submitter wondered: “What is the status of communication and contact between the parties, after the general strike became a fact?” See the answer Thomas Benson, lecturer at Nord University and lawyer in employment law, replied: “There may be informal contact between the parties, but it has not emerged that there has been significant contact. The national mediator and the mediator who has dealt with the case can resume the mediation at any time, cf. section 30 second paragraph of the Employment Disputes Act. If a month has passed after the mediation ended without the dispute being resolved in the meantime, the mediator who has dealt with the case must resume contact with the parties with a view to ending the conflict. If a mediation proposal is for consideration by the parties, the mediator must wait until the consideration has been completed, cf. the Employment Disputes Act section 30 third paragraph”. Why is there a duty to speak? One wondered: “Why is everything subject to confidentiality? Wouldn’t it be better to have full transparency, much easier to deal with. Now there will be echo chambers and a lot of opinion, from the media, private individuals, companies etc. Had also avoided souring the relationship between the parties, when things finally leak out. Yes, there would be a few million “experts” on everything. But then it is said that there are professional parties, so surely they should be able to withstand that burden?” See the answer Thomas Benson, lecturer at Nord University and lawyer in employment law, replied: “Anyone who participates in the mediation is obliged to maintain silence about what has emerged if the mediator does not allow publication, cf. section 23 of the Employment Disputes Act, second paragraph. It is necessary that those who participate in the parties’ negotiating delegations do not comment on what is discussed during the mediation, neither while the mediation is in progress nor afterwards. It is crucial for the mediation process itself in the individual case, but also for the entire mediation function as such, that the mediation takes place in confidence, and it is therefore important that the duty of confidentiality applies both during the mediation and afterwards. The duty of confidentiality covers all stages of the mediation work, including, for example, meetings and conversations preparatory to mediation, joint meetings and special meetings, Prop. 134 L (2010−2011) p. 80. It is highly objectionable that this seems to have been breached by the parties. It also makes it difficult for the parties to contact each other afterwards. Trust breaks down and prevents a quick resolution of the conflict”. Long-term purchasing power for everyone? While another submitter was curious: “Is it possible for a society to have perpetually increased purchasing power for everyone? Is it that simple that we can just decide on it? The central bank has set itself the goal of reducing our purchasing power. LO has set itself the opposite goal. Does it go together? The Norwegian krone is weaker than it has been for a long time. What happens to purchasing power and wages when the krone exchange rate normalizes? Then the demand for LO will no longer be measured in purchasing power but in percentage increase again? What will happen to the trade balance, and how will Ola notice it?” See the answer Frode Steen, professor at the Norwegian School of Economics, answered: “Real wage growth over time is only possible if we have productivity growth in the economy (at least as long as we keep oil funds and other things out of the picture). In other words, wage growth and inflation must be seen in relation to productivity growth in the economy”.



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